Mumbai: Hindustan Lever Limited (HLL) and McLeod Russel India Limited (MRIL) today signed the MoU for the transfer of HLL''s 100-per cent shareholding in Doom Dooma Tea Company Limited (DDTCL) for Rs69 crore plus net current assets as on December 31, 2005.

DDTCL owns seven tea estates in Tinsukia district of Assam with a tea planted area of approximately 3,100 hectares and three factories to process tea. The average output from these tea estates has been approximately 6,000 metric tons. The tea gardens of DDTCL are in the quality belt of Assam and are in close proximity to the tea gardens of MRIL group.

HLL believes that the proposed transfer to MRIL, a lead industry player in tea plantations, is in the best interests of the business and all its stakeholders. The acquisition of DDTCL by MRIL will bring in more synergy benefits to MRIL and will enable MRIL to realise better prices for its tea varieties both in domestic and overseas markets.

The transaction is expected to be completed in January 2006 after the approval of the shareholders of Mcleod Russel India Limited. HLL had transferred its tea plantation business in Assam to DDTCL with effect from 1st April 2005, after having received the approval of the Mumbai high court in October, this year.